Market Research Report on:

Packaged
Fruit Juices
& Drinks in
India
Present & Future
Potential, Market
Insights, Growth
Drivers, Opportunities,
Industry Size, Porters 5
Forces, Demand
Analysis & Forecasts
upto 2017

Published: July 2014

TABLE OF CONTENTS

OVERVIEW................................................................................................................................................................................... 4
1.1
1.2

The Global Scenario ............................................................................................................................................................. 4

The Indian Scenario ............................................................................................................................................................. 5

1.2.1
1.2.2
2

GROWTH DRIVERS & OPPORTUNITIES ...................................................................................................................... 8

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10

Growing Health Consciousness ........................................................................................................................................ 8

Rising Incomes ...................................................................................................................................................................... 9
Surging Modern Trade...................................................................................................................................................... 10
Convenient Packaging ....................................................................................................................................................... 12
Changing Perceptions & Preferences ............................................................................................................................. 12
Burgeoning Middle Class .................................................................................................................................................. 13
Increasing Rural Appetite ................................................................................................................................................. 14
Urbanization......................................................................................................................................................................... 15
Low Per Capita Consumption .......................................................................................................................................... 15
Rising Share of Packaged Category ............................................................................................................................... 16

DEMAND-SUPPLY ANALYSIS .......................................................................................................................................... 18

3.1

Demand Analysis ................................................................................................................................................................ 18

3.1.1
3.1.2
3.2

Processing Units ........................................................................................................................................................ 20

Fruit Production ........................................................................................................................................................ 21

PORTERS 5 FORCE ANALYSIS ........................................................................................................................................ 22

4.1
4.2
4.3
4.4
4.5

Consumption of Packed Fruit Beverages ............................................................................................................. 18

Market Size.................................................................................................................................................................. 19

Supply Analysis ................................................................................................................................................................... 20

3.2.1
3.2.2
4

Classification ................................................................................................................................................................. 6
Structure......................................................................................................................................................................... 7

Bargaining Power of Buyers ............................................................................................................................................ 23

Bargaining Power of Suppliers ........................................................................................................................................ 24
Rivalry among Existing Players ..................................................................................................................................... 25
Threat of Substitutes .......................................................................................................................................................... 25
Threat of New Entrants .................................................................................................................................................... 26

KEY PLAYER INFORMATION .......................................................................................................................................... 28

5.1

Key Player Profiles ............................................................................................................................................................. 28

5.1.1
5.1.2
5.1.3
5.1.4
5.2

Dabur India Ltd.......................................................................................................................................................... 29

PepsiCo India Holdings Pvt. Ltd. .......................................................................................................................... 32
Parle Agro Pvt. Ltd. .................................................................................................................................................. 33
Coca-Cola India Pvt. Ltd.......................................................................................................................................... 34

Peer Group Financials ....................................................................................................................................................... 35

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5.2.1
5.2.2
5.2.3
6
7
8

Contact Information .................................................................................................................................................. 36

Key Financials............................................................................................................................................................. 44
Financial Comparison ............................................................................................................................................... 57

OUTLOOK ................................................................................................................................................................................... 81
............................................................................................................................................................................. 82
DISCLAIMER ............................................................................................................................................................................. 83

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LIST OF FIGURES & TABLES

Figure 1 Top Ranking Beverages in Global Beverage Industry ................................................................................................. 4
Figure 2 Non-alcoholic Beverage Industry in India- Classification ........................................................................................... 5
Figure 3 Fruit Beverage Industry in India- Classification............................................................................................................ 6
Figure 4 Indian Fruit Beverage Industry- Structure ..................................................................................................................... 7
Figure 5 Top 3 Obese Countries in the World ................................................................................................................................ 8
Figure 6 India's Annual Per Capita Income (2008-14, In INR)................................................................................................... 9
Figure 7 Share of Beverages in Total Household Expenditure (2005-12, In %age) ............................................................ 10
Figure 8 Indian Retail Industry- Structure .................................................................................................................................... 11
Figure 9 Indian Middle Class Population (2011-2026) ............................................................................................................... 14
Figure 10 Indian Population- Rural & Urban (In Crores) .......................................................................................................... 15
Figure 11 Per Capita Consumption of Fruit Beverages in India and Other Countries (In Litres) ................................... 16
Figure 12 Rising Share of Packaged Category in Indian Fruit Beverage Industry ............................................................. 17
Figure 13 Packaged Fruit Beverages in India- Consumption (2007-17, Volume) ................................................................ 18
Figure 14 Packaged Fruit Beverage Industry in India- Market Size (2011-17, In INR Billions) .................................... 19
Figure 15 Fruits & Vegetables Processing Units in India (1994-2011) .................................................................................. 20
Figure 16 Installed Capacity of Fruit & Vegetable Processing in India (In Million Tonnes) ........................................... 20
Figure 17 Fruit Production in India (2009-17, In Million Tonnes) ......................................................................................... 21
Figure 18 Dabur India Ltd- Shareholding Pattern (March 2014) ............................................................................................ 29
Table 1 Presence of Key Food Retailers in India- Total Stores ................................................................................................ 11
Table 2 Bargaining Power of Buyers ............................................................................................................................................... 23
Table 3 Bargaining Power of Suppliers ........................................................................................................................................... 24
Table 4 Rivalry among Existing Players ........................................................................................................................................ 25
Table 5 Threat of Substitutes............................................................................................................................................................. 25
Table 6 Threat of New Entrants ....................................................................................................................................................... 26
Table 7 Dabur India Ltd- Financial Summary (2011-13, In INR Millions)........................................................................... 30

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OVERVIEW

Fruit beverages are a high growth segment in Indian beverages

industry. The segment has evolved with a consistent change in
consumer preferences for fruit based drinks from tradition carbonated or
aerated drinks. Fruit drinks are increasingly finding their space in
Indian kitchens replacing their carbonated counterparts. We estimate
that the sector has high potential to grow in the coming years and will
surely solidify its place in the Indian households. The factors that have
and will continue to lend a hand to its spiraling growth are changing
consumer dynamics like rising incomes, growing health consciousness
and urbanization.

1.1 The Global Scenario

Global fruit beverage market is also experiencing same kind of growth
with renewed consumer taste for fruit based beverages. Although,
industry estimates indicate that fruit juices are not anyway closer to be
tagged as globally preferred drink, it has the potential to overcome its
several counterparts.
A leading research firm estimates global fruit and vegetable juice market
has all the triggers in place to cross 65 billion liters by 2015. The
emerging categories like fortified and natural juices will drive the
volumes ahead.

Figure 1 Top Ranking Beverages in Global Beverage Industry

Bottled
Water

Tea

Milk

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Fruit drinks are increasingly

finding their space in Indian
kitchens
replacing
their
carbonated counterparts.

1.2

The Indian Scenario

Fruit based beverages fall under the umbrella of non-carbonated drinks

category in non-alcoholic beverage sector. Fruit drinks market in India
is fast evolving and emerging as the fastest growing sector in the nonalcoholic beverage segment. Indian non-alcoholic beverage segment has
witnessed rapid success in last few years withnon-carbonated section
emerging as the strong pillar. There has been a strong shift of consumer
preferences from carbonated drinks to the non-carbonates. Rising
health awareness and rising lifestyle diseases have brought in the
majority of push for the sector.
Fruit based beverages fall
under the umbrella of noncarbonated drinks category in
non-alcoholic beverage sector.

The chart below demonstrates the classification of non-alcoholic

beverage segment in India.
Figure 2 Non-alcoholic Beverage Industry in India- Classification

Nonalcoholic
Beverages

Soft Drinks

Carbonated
Beverages

Noncarbonated
Beverages

Fruit Based
Beverages

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Hot
Beverages

Others